Update – HMRC Treatment of Credit Notes for VAT

Last year there were changes in relation to UK treatment of VAT document rules. We are seeing these filter through to practice now and so would like to share them with you. They concern Credit Notes, i.e. the commercial document issued by the supplier to the customer produced as evidence of a lower sales value, e.g. of a cancellation, discount, refund or other commercial reason.

The changes reflect greater emphasis by the tax authorities on the correct documentation to support VAT claims. We anticipate suppliers who deal direct with the public facing particular problems with VAT reclaims on their credit notes, as HMRC try to close the VAT gap. If your business has any difficulty with obtaining the correct document, then Way2VAT can assist.

Source Way2VAT

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